6 Business Data Analytics Mistakes That Could Cost You
Collecting business data without analyzing it is an unnecessary investment of time and resources. Getting in front of your analytics is one of the best ways to ensure you make the right decisions on behalf of your company.
Waiting too long to analyze data
Analyzing piled-up data is daunting. Make a point of checking in on crucial data monthly or weekly if possible. Regular reviews will make a difference in knowing where your business stands and how effective your decisions are moving forward.
Analytics is often most helpful when presented in real-time, making data-streaming solution providers like Striim (https://www.striim.com/product/) a must for your business.
Looking for data after making a decision
It is common to get blinded by biases and seek information supporting our current train of thought. Using data to confirm your ideas distracts you from the original goal while you go off searching for the answer.
Making decisions on erroneous data can lead to disastrous results for your company. It is advisable to come up with conclusions after careful data analysis, which leads to business growth.
Relying only on data
Do not let data and analytics be your only guide. When making business decisions, you must consider several factors, including your experiences and expertise, industry trends, economic predictions, and competitor moves.
Your team may also have ideas about the best way to move forward with a project or even what they think is the root cause of a problem.
If you rely heavily on data without considering these other factors, you could miss important information that could impact your decision-making process. However, this opinion should never replace the need for hard evidence.
Using the wrong tools
Failure to investigate the institutional problem and identify the data relevant to the situation leads to the wrong choice of tools. Make prior decisions before choosing the appropriate data analysis tools.
With Google Sheets, for example, there are plenty of ways to analyze your data and even create interactive charts with just some basic coding knowledge. For more advanced tools, utilize free trials so you can test them out before spending a dime.
Ignoring core metrics
Some businesses ignore their core metrics because they are too busy tracking vanity metrics like the number of downloads or app store ratings.
Core metrics represent key performance indicators that will help you understand how your business is performing and how you can improve it over time. For example, a retailer would measure average customer order size and shopping frequency, while a mobile game developer might track daily and monthly active users.
Using wrong visual representations of data insights
Graphical models are vital in communicating data insights effectively, but only when implemented correctly. Potential snafus in visual representation include irrelevant or superfluous visuals and mixing visuals from different datasets. Use visual presentations relevant to the data you want to analyze.
Most companies fail because they do not utilize data analytics to their full advantage. It is essential to analyze data effectively in everyday business decisions for organizational success.